DALLAS, March 29, 2017 /PRNewswire/ -- Comerica Bank's Texas Economic Activity Index ticked up by 1.3 percentage points in January to a level of 93.1. January's index reading is 20 points, or 28 percent, above the index cyclical low of 72.8. The index averaged 91.3 points for all of 2016, six and one-tenth points below the average for full-year 2015. December's index reading was 91.8.
"The Comerica Bank Texas Economic Activity Index increased for the fifth consecutive month in January. We believe that the recent positive performance of the index represents a fundamental turning point in the Texas economy. The state's important energy sector is growing again in a low oil price environment as well-seasoned energy companies utilize new technologies and capture new efficiencies in their operations. Seven out of eight index components were positive in January, including nonfarm employment, state exports, unemployment insurance claims (inverted), drilling rig count, home prices and hotel occupancy. Only the state sales tax sub-index declined for the month," said Robert Dye, Chief Economist at Comerica Bank. "We expect stabilizing conditions in the Houston area will gradually give way to renewed growth this year, eliminating a key drag on the Texas economy."
The Texas Economic Activity Index consists of eight variables, as follows: nonfarm payrolls, exports, hotel occupancy rates, continuing claims for unemployment insurance, housing starts, sales tax revenues, home prices, and the Baker Hughes rotary rig count. All data are seasonally adjusted, as necessary, and indexed to a base year of 2008. Nominal values have been converted to constant dollar values. Index levels are expressed in terms of three-month moving averages.
Comerica Bank is a subsidiary of Comerica Incorporated (NYSE: CMA), the largest U.S. commercial bank headquartered in Texas, strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to a local banking center network throughout Dallas-Fort Worth, Houston, Austin, San Antonio and Kerrville, Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico.
SOURCE Comerica Bank